What Is Environmental Insurance: Who Needs It?

Many people are aware of the types of insurance but ask, “What is environmental insurance?” It can work alongside general liability and property insurance policies but is more necessary in recent years. A reliable transportation insurance company like Transportation Construction Environmental (TCE) Insurances Services Inc. can help you make sense of environmental insurance.

In the past few years, we have seen the desire for environmental insurance increase for multiple reasons. Potential reasons may include PFAS (polyfluoroalkyl substances) in groundwater, floods, earthquakes, and worries regarding the coronavirus pandemic (especially in 2020).

What Is Environmental Insurance?

Environmental insurance (pollution coverage or pollution insurance) covers loss and damages that released pollutants cause that property insurance and general liability insurance do not support. It intends to fill in the gaps with these insurance types and cover unexpected risks.

The damage or losses that environmental insurance often covers can include, but are not limited to:

  • Bodily injury
  • Costs of aftermath cleanups
  • Faulty heating or air conditioning system fumes
  • Interruption of business
  • Poor indoor air quality
  • Property damage
  • Risks against asbestos, lead paint, and mold

After 25 years, environmental insurance continues to grow and change with the world, but it is becoming more difficult for people to understand. In 1978, the environmental Impairment Liability Insurance (EIL) began, and the private version by AIG insurance came in 1980. The contractors’ environmental liability arrived in 1986 with the name “Contractors Pollution Liability,” and since then, people have used many forms for their purposes.

What Does Environmental Insurance Cover?

General environmental insurance policies should agree to cover damage and losses from released or escaped pollutants. Some of these policies can cover losses stemming from the following:

  • Bodily injury
  • Cleanup costs
  • Defense costs
  • Property damage

You should review coverage forms and policies to find the best options for your needs. TCE Insurance Services Inc. can browse them with you to find the best plan. There are some optional coverage choices commonly added to insurance plans, such as:

  • Business interruptions
  • Cleanup costs for substances not defined as hazardous, such as fungi or bacteria
  • Damaged reputations
  • Loss of rent or income
  • Midnight dumping onto locations with insurance
  • Transporting pollutants under the guise of cargo

Environmental Insurance Policy Forms

Various factors help answer, “What is environmental insurance?” and one is environmental insurance policy forms. There are three notable ones.

1. Contractor’s Environmental Liability

The contractor’s environmental liability works with the insured’s operations that cause pollution occurrences. The form requires a record of the party’s operation size and description.

2. Environmental Impairment Liability

Every location has different policies and variations of forms. However, an environmental impairment liability considers pollution conditions (if any are preexisting) at the site of the insured party, the property’s purpose or use, and the materials found on the property. 

The form can offer coverage for rent loss, business interruption, costs of cleanups, and additional expenses related to living spaces, like apartments.

3. Professional Liability 

A professional liability policy helps cover pollution-based losses and emphasizes the insured person’s qualifications. 

Reviewing Environmental Insurance Policies

A common issue people in the industry face is believing their general liability and property insurance policies cover them against environmental circumstances. In reality, they require environmental insurance on top of what they already have to protect them from paying more than necessary. Unfortunately, there is a great deal of confusion surrounding policies as the language suggests that some environmental insurance excludes more than covers issues.

In addition, agents often receive inaccurate information regarding environmental insurance, resulting in a lack of coverage or distribution of false information. Our team at TCE Insurance Services Inc. can help make sense of these complex and sometimes confusing policies and terminology. 

Contact TCE Insurance Services Inc. and Learn About Environmental Liabilities

TCE Insurance Services inc. has experience with environmental insurance industries and can help you understand liability policies. We can help you and your business operate smoothly with knowledge of necessary insurance policies. We also have a rich background regarding environmental risks and hazards.

We hope you can now answer, “What is environmental insurance?” Learn more about lowering insurance costs and check our website for more helpful insurance-related information. We are happy to answer your questions and help you navigate New York’s complex insurance system and regulations.

Contact our Staten Island, NY, office by calling 718-370-3131 or our Hauppauge, NY, office by calling 631-352-5700. We can help you obtain environmental insurance coverage. You can also fill out our convenient online form, and well will provide a fast response.